McConnell Dowell to construct North East Gas Interconnector

The Northern Territory government this week announced that Jemena has been selected to build and operate the North East Gas Interconnector (NEGI), connecting the Territory’s vast gas fields to the east coast gas market. The 623 km pipeline will link Tennant Creek in the Territory to Mt Isa in Queensland and has a capital cost of around $800 million.

McConnell Dowell has been supporting Jemena throughout the competitive tender process for the NEGI project and will continue in this role as the agreed construction contractor for the project. The construction scope for the contract will include the 623 km high-pressure gas pipeline, two compressor stations and gas treatment facilities. The value of this construction work is expected to exceed $300 million.

Jemena and McConnell Dowell have been working closely with communities and businesses along the proposed route from the start of the bidding process in order to maximise local and Indigenous participation in the delivery and ongoing management of the pipeline.

“The collaborative Early Contractor Involvement approach adopted by Jemena has assisted McConnell Dowell and other project partners and key stakeholders to work together to provide optimised solutions for this project. We thank the Jemena team for providing us with this opportunity,” said Jim Frith, McConnell Dowell executive general manager pipelines.

“We look forward to project execution so we can play our part in delivering the full benefits of this project to the community and other project partners. The project is an important addition to our significant track record of successful major pipeline and mechanical infrastructure delivery.”

Construction of the NEGI is expected to be completed by 2018. Once completed, it will be known as the Northern Gas Pipeline (NGP).